Forex Remittance Business

1)、Product Introduction

Foreign exchange remittance business is a kind of foreign exchange remittance, transfer and settlement business that the bank is entrusted by the client to deliver the money to payee in a certain way through the bank clearing network. For this business three remittance methods are often used: wire transfer, demand draft (including clean collection) or letter transfer. At present, wire transfer is used most often, including inward remittance and outward remittance.

2)、Purpose

Our bank can provide such international remittance settlement services to those enterprises in cross-border business process that need to remit or receive foreign exchange payments, capital, bonuses, commissions and fees of other trade, non-trade, capital items via T/T.

3)、Product Functions and Advantages

Our bank can provide safe, convenient and swift foreign exchange clearing and settlement service. Our system is advanced and can guarantee safe transfer of funds. The remittance is fast and is always done in a timely manner. With a network spreading all over the world we provide diversified service channels, which can not only safely and efficiently remit foreign exchange funds to the payee, but also effectively save the remittance cost and reduce the transit fees for customers.

4)、Targeted Clients

Any customer who has foreign currency cross-border collection and paying needs (in line with the foreign exchange management policy)

5)、Warm Tips

While handling business, one should pay attention to market risks like exchange rate fluctuations and closely examine the relevant business data stipulated by the SAFE to avoid policy risks and guard against the sanction risks like blacklisting.

6)、Special Services

（1）Remittance Express

When we receive the remittance from an overseas accounting bank, we settle the customer's account on the very same day without having to do account checking the following day, which means one day earlier for the customer to get the remittance.

（2）Handling of Emergency Remittance

If you have the emergency demand for instant remittance, our bank can give priority to you through the special arrangement of the account bank.

（3）Large-sum USD Service

If you are a large transnational corporation that needs transfer and payment for fund position in China or foreign countries, you can choose our Large-sum USD Service. Through our specially designed remittance route and method, you can realize the same-day clearing of receipt and payment in both China and foreign lands.

（4）Cross-Strait Remittance Day Pass

The product 'Cross-Strait Remittance Day Pass' of our bank ensures the same-day arrival of the USD remittances between customers and Taiwanese enterprises, substantially reducing the remittance time and effectively reducing the remittance costs of the intermediary bank.

（5）Full-account Receipt

If you want to ensure the full-account receipt of your remittances, our Full-account Receipt is available for you. You can prepay the deduction by the intermediary bank to ensure the receipt of the full amount.

（6）Online Batch/ Single Forex Receipt and Payment

Clients can submit single/batch foreign exchange remittance or collection demand through our leading online foreign exchange remittance platform, which simplifies the formalities for customers and improves the efficiency of processing. At the same time, it covers the declaration of international balance of payment, saving you the trouble of going to the counter to submit the application.

（7）SWIFT Order Processing

To meet the requirements of large multinational corporations, our bank can accept the SWIFT directive from the overseas headquarters of the client and handle foreign exchange collection and payment for domestic enterprises so as to facilitate the centralized management and supervision of the corporate funds.

Import L/C

1)、Product Introduction

The import L/C is issued by our bank to the exporter (beneficiary) based on the instructions from the importer (issuing applicant). Our bank will pay the price of goods or other funds stipulated in the L/C after we receive the qualified documents for the L/C from the exporter.

2)、Business Type

Import L/C mainly includes irrevocable documentary letters of credit, negotiable letters of credit, revolving letters of credit, back-to-back letters of credit and so on.

3)、Purpose

Our customers as import traders, when agreeing with the exporter to settle the trade credit by L/C, customers can choose our import L/C. According to customers’ application, we can establish a L/C to the exporter and provide follow-up services including arrival order, commitment to pay or nonpayment.

4)、Targeted Clients

Businesses that use letters of credit for fund settlement

5)、Product Functions and Advantages

（1）To improve the negotiation status. The issuance of letters of credit provides the conditional payment promises for the exporter in addition to commercial credit, and enhances the credit of customers (the importer), which will help customers to strive for more reasonable prices for goods;

（2）To secure the deal. The role of the bank in the trade of customers and exporters transforms commercial credit to bank credit, which secures the deal and effectively controls the right of ownership, mode of transport, period of shipment and the quality of the goods through the documents and terms;

（3）To reduce the financial pressure. For customers using the letters of credit (the importer), they can have free capital after the issuance of the letters of credit and before payment. At the same time, customers can apply for financing in case of the financial constraints.

6)、Access Conditions

The applicant’s credit rating should be or above the BBB level, normal production and management period be or more than 2 years; with the right to operate import and export business; listed on the “Directory of Foreign Exchange Payment Importing Units” promulgated by the local FECB or with “Import Payment of Foreign Exchange Record”; customers of service trade should be qualified to pay the foreign exchange according to the provisions of foreign exchange administration.

7)、Documents Needed for Business Application

A copy of business license, a copy of the articles of association and other basic files, import contracts, the application for L/C. New customers should offer the official documents for import and export business, business license as well as open a margin account.

8)、Warm Tips

1、In principle, the validity of the import L/C can’t exceed 2 years.

2、In principle, the credit period for usance L/C can’t exceed 6 months.

3、Foreign currency usance L/C is not currently included in the scope of foreign debt management.

Advice of Letters of Credit and Presentation of Documents

1)、Product Introduction

Advice of a L/C (L/C) means the preliminary verification and the notification of the received L/C or its amendments to the beneficiary. The presentation of documents includes checking the documents according to the terms and conditions stipulated in L/C and facilitating the payment by sending the documents to the issuing bank or the nominated bank.

2)、Product Functions and Advantages

（1）Lower risk - the client relies on the creditworthiness of the issuing bank and not that of the importer so the client is assured of receiving payment by the issuing bank under certain conditions.

（2）More proactive - the client is assured of receiving payment by the issuing bank provided the documents that meet the requirements of L/C are presented. Our Document Center will footnote all clauses in the L/C and documents that are unfavorable to the client’s receipt of payment so as to better serve the client’s interests.

（3）Network advantages - with the help of the network of our overseas branches and correspondent banks, we review L/C so as to prevent fraud fundamentally.

（4）Funds finance - our bank also provides convenient trade finance package to satisfy the needs of the exporter before exporting its goods.

（5）Convenient and fast on-line inquiry service

3)、Targeted Clients

Exporters in need of

（1）Additional assurance of the issuing bank for not knowing the credit of the importer

（2）Trade finance package including trade finance such as outward bill and forfaiting

4)、Warm Tips

On receiving the L/C (and its amendments), we will verify the preliminary authenticity of L/C by checking the seal, test key and the content according to international practices and notify the beneficiary of the content as soon as possible. Later, the client is asked to fill the agency form for the presentation of L/C and send it with the documents required to our bank. We will review the documents in accordance with the international practices and mail them to the issuing bank to facilitate the payment.

Inward Collection

1)、Product Information

Entrusted by a foreign correspondent bank (remitting bank), and according to their instructions, we (collecting bank) will notify the importer of the documents and to pay (D/P) or accept (D/A) as instructed.

2)、Purpose

Our client being the importer makes payments through collection. We suggest the client ask the foreign exporter to choose our bank as the collecting bank. As soon as we receive the collection documents mailed by the foreign remitting bank, we will notify the importer to pay D/P or accept D/A as instructed.

3)、Targeted Clients

Importers who wish to pay through collection

4)、Product Functions and Advantages

（1）Low cost - low banking fees; help reduce handling expenses and easy to use so as to control the costs as compared with L/Cs

（2）Improve cash flow –with D/A the importer can immediately obtain and dispose the goods after acceptance, and make payments later as the inflow of cash are generated by the sale of goods with no occupation of the funds

5)、Warm Tips

Measures used in following situations：

（1）Inform the remitting bank that we do not accept or provide the service for the moment and ask them to make amendments：

1）Our bank is made the drawee of the draft

2）The remitting bank requires us to confirm the collection payment (if the requirement is in line with inward collection confirmation and the drawee has sound credit line in our bank, it will be dealt in the same way of inward collection confirmation)

（2）We deal with it but the client should inform clearly the remitting bank that the service is not part of our services

1）The remitting bank commissions us to buy the warehouse insurance

2）The remitting bank asks us to provide a protest of bill when the drawee refuses to pay

Export Documentary Collection

1)、Product Introduction

It refers to an international trade settlement that as entrusted by an exporter, the remitting bank collects payments from an importer through a foreign collecting bank upon presentation of the exporter's commercial and financial documents after the goods are loaded. The export documentary collection has two ways of payment, i.e. D/P and D/A

2)、Purpose

The client being the exporter knows the credit status of the importer and has sufficient fund for storage and shipping. The client can choose us as the remitting bank and send us all the documents required. After checking the documents, we will mail them to the collecting bank as instructed.

3)、Targeted Clients

The client should have the qualification to engage in import and export trade. Exporters choose documentary collection as the settlement when signing the international trade contract.

4)、Product Functions and Advantages

（1）Low cost - low banking fees, help reduce handling expenses and control the costs, easier to operate when compared with L/Cs

（2）Lower risk - the importer can only take delivery of the goods after D/P or D/A, which helps reduce the risks for the exporter when compared with sales on account.

5)、Warm Tips

（1） Credit risks of the collecting bank and political risks of the country and region it is in

Although documentary collection is concerned with business credit, it is better to choose a collecting bank with good credit to facilitate the payment. If our client is not familiar with the foreign banks, we can pick for them a bank with good stability and credit and high-quality service.

（2）Risks concerning importer

Documentary collection is concerned with business credit. The payment depends on the importer so the credit status of the importer is very important.

Special Services for Documents

1)、L/C Custody

We provide L/C custody lest the original L/C should be lost in the transmission so as to accelerate the work efficiency. We keep the original L/C after receiving it and its amendments and notify the client through fax and other ways. Later, the client only has to present us other documents required in the L/C.

2)、Online Banking International Settlement

To faster client’s business process, we provide online banking services, which include issuing, amending and advising of the L/C, issuing a letter of guarantee (L/G), checking the status of inward collection, export L/C and export documentary collection. The online L/C services are easy to use, support electronic document, and provide timely and trans-regional tracking.

3)、Telephone Notification of L/C

We telephone the client about the latest updates of the issuing and amending of the L/C. On the day receiving the L/C, we notify the client of relevant business process by phone, text message and email.

4)、Door-to-door Collection of Documents

To improve our international trade service, we provide the service of transmitting, between the bank and companies, the documents of international trade settlement including application forms of L/Cs and remittance and other relevant documents.

5)、Waybill Notification

For export L/C clients, we notify them of the waybill after the presentation of the documents through text messaging to enable them to track the delivery status timely.

Buyer Usance L/C (Under the Import L/C)

1)、Product Introduction

Our bank upon the request of the applicant issues usance L/C. Our bank or a reimbursing bank makes the payment to the beneficiary (or the negotiating bank) at sight or at the predetermined future time stipulated in the L/C. Later, by the maturity date the applicant should make the payments under the L/C, interests and bank charges.

2)、 Purpose

The product is used to control costs and lift the cost pressure due to deferred payment. The usance L/C enables our bank or a reimbursing bank to make the payment to the beneficiary (or the negotiating bank) on time or at a predetermined time stipulated in the L/C. Later when the payment is due, the applicant can make the payments under the L/C, interests and bank charges.

3)、 Targeted Clients

Those importers that hope to get lower import price through immediate payment and obtain low-cost bank financing to supplement corporate turnover of capital.

4)、Product Functions and Advantages

1. Enhancement of bargaining ability - it can help importers in enhancing their bargaining ability when dealing with exporters to get spot price to gain price advantage.

2. Better control of the operating costs –The purchase price using the buyer's usance L/C is lower than that by use of the forward L/C, lowering down the expenditure of tariff and taxes (VAT) and cargo costs.

5)、 Maturity

6 months at maximum (inclusive)

6)、 Documents Required

1、Copy of business license and seal to be reserved for opening an account (for our new client only)

2、Application for Usance L/C and application & agreement for irrevocable L/C

3、Import contract (and export contract under intermediary trade)

4、Import agency agreement (under import agent service)

5、Registration form for foreign exchange remittance (if necessary)

6、Signing a Letter of Commitment for Establishing Usance L/C with our bank

Import Bill Advance (Under the Import L/C)

1)、Product Introduction

Import Bill Advance refers to a short-term trade fund dedicated for paying the import goods payment, released by our bank according to the request of the customer. Our bank, after entitled the ownership of the goods, makes advance payment on behalf of importer with valid certifications and commercial bills under import L/C or inward collection.

2)、 Purpose

The product is used to meet the short-term financing requirements of importers under import L/C or inward collection.

3)、Targeted Clients

Importers that encounter temporary difficulties in capital turnover under import L/C or inward collection and that have confirmed payment and yet cannot have the payment period of the exporter extended.

4)、 Product Functions and Advantages

1. Sharing the same credit line with L/C. Import Bill Advance under import L/C shares the same credit line with import L/C, which means the clients don’t need to apply for another one.

2. Potential appreciation. Import bill advance can bring returns in the context of the appreciation of RMB.

5)、 Financing Ratio and Period

1. Financing ratio: The margin shall be released prior to the expiration of the bill of credit, and the total amount of the bills may not exceed the difference between the actual remittance and the margin

2. Financing period: maximum of 6 months (rollover included)

6)、Documents Required

1、Application for import bill advance

2、Agreement on import bill advance

3、Trust receipt (Customers with a low risk guarantee are not subject to this restriction. Whether High-quality customers or customers who can effectively guard against risk need to submit trust receipts can be determined by the first-level (direct) branch of our bank)

4、Written permit of external payment with signature and stamp

Prepayment Financing (Under the Import L/C)

1)、 Product Introduction

Pre-payment financing refers to that when the domestic importer shall pay the full or partial payment in advance under the contract of trade, our bank carries out the prepayment financing and pay the exporter at the request of the importer, after confirming the legitimacy of the importer’s remittance.

2)、 Purpose

When the domestic importer is required to pay the full or partial payment in advance under the contract of trade, our bank pay the exporter on behalf of the importer, after confirming the legitimacy of the importer’s remittance.

3)、 Targeted Clients

1、Customers shall be a foreign exchange receipts and payments enterprise registered in SAFE(State Administration of Foreign Exchange) with the import and export operation rights.

2、Clients with a credit grade of A or above and enough credit line from our bank

3、Importers who adopts payments in advance as its trade settlement method

4)、 Product Functions and Advantages

1. Increase capital turnover: Our bank's advance financing can meet the funding needs of importers during purchase and reduce the pressure of one-time payment.

2. Improve the client’s bargaining power: prepayment financing enables clients to purchase in large quantities with less capital and make orders at reasonable price in time to meet market demands, which increases their bargaining power and brings more potential yields.

5)、Financing Ratio and Period

1. Financing ratio: for clients with a credit grade of AA- or above, the ratio can be up to 90% of the prepayment required in the import contract; for clients whose credit grade is below AA-, the ratio shall be no more than 70% of the prepayment required in the import contract.

2. Financing period: maximum of 6 months (rollover included)

6)、 Documents Required

1、Application for prepayment financing

2、General agreement on prepayment financing

3、Application for outward domestic and overseas remittance

4、Import contract in which the domestic importer is required to make full or partial prepayment (Import and export contracts are both needed under re-exportation.)

5、Agreement on import agent service (if import agent service is involved)

6、Commercial invoice or pro forma invoice of prepayment

7、Prepayment guarantee provided by the exporter (if required)

8、Approval documents of import (for goods that need to be inspected by the government)

9、Other documents required by our bank

Import Factoring (Under the Import Trade)

1)、 Product Introduction

Import factoring is a service to increase your company credibility in front of your exporter when your company settles the import by credit sale or documents against acceptance. As requested, ICBC accepts the account receivables transferred from your exporter to offer payment guarantee and other account management service for your company. If the importer fails to make a payment because of financial or credit problem, our bank will guarantee payment based on the importer’s credit lines and provide financial services including collection of accounts receivable, business information survey and protection against bad debts.

2)、 Types

There are two type of import factoring. When the buyer is notified of AR assignment and invoice clearly indicates the money is paid to our bank, it’s called “undisclosed import factoring”; When the buyer is notified of AR assignment unless it fails to make a timely payment, it’s called “undisclosed import factoring”.

3)、Targeted Clients

Importers who choose to purchase goods on credit or acceptance bill.

4)、 Targeted Clients

Clients whose credit grade is A or above.

5)、 Product Functions and Advantagesp>

1. Increased credibility: import factoring provides credit guarantee, which improves its credibility and company image.

2. Simple account management. Our bank offers a range of services such as reconciliation, reminding when due, easy for you to manage your accounts properly

3. Stable relationship with your trading partner. Backed by our bank’s credit guarantee, you can establish a long-term, mutual-beneficial relationship with your trading partner.

6)、 Financing Ratio

No more than 80% of the invoice value of the claim reimbursement

7)、Documents Required

When our bank evaluates the buyer's preliminary credit, approves a credit line, the following documents are needed:

1、Application for import factoring

2、Agreement on import factoring

3、Trade contract (if there is any)

4、Payment documents, including shipping documents and commercial documents (required only when the importer need financing)

Import T/T Financing (Under the Import Trade)

1)、 Product Introduction

Import T/T Financing is a kind of T/T financing service offered to import enterprises for the payment with cash on delivery to the seller after confirming the legitimacy of the buyer’s remittance and adopting effective guarantee or mortgage.

2)、 Purpose

If you adopt pay-on-delivery to settle trade payment, Import T/T Financing enables you to make the payment in a timely manner, improve your capital liquidity, and improve your working capital.

3)、 Targeted Clients

（Ⅰ）Clients who have import and export operation rights.

（Ⅱ）Clients who are a foreign exchange receipts and payments enterprise registered in SAFE with a credit grade of A or above and enough credit line

（Ⅲ）Importers who adopt cash on delivery as its trade settlement method

（Ⅳ）Importers who are unable to pay or redeem its bills on time and need financing for lack of capital liquidity

4)、Product Functions and Advantages

1. Improve your working capital and enable you to pay in time. Through Import T/T Financing of our bank, the customer can make payment to the exporter in a timely manner.

2. Increase your credibility and promote your image through timely payment.

5)、Financing Ratio and Period

1. Financing ratio: no more than 100% of the outward remittance

2. Financing period: maximum of 6 months (rollover included)

6)、Documents Required

1、General agreement on import T / T financing or agreement on import T / T Financing

2、Application for import T / T financing

3、Import contract

4、Application for overseas / domestic remittance

5、Agreement on import agent service (if import agent service is involved)

6、Approval Documents of Import (for goods that need to be inspected by the government)

7、Commercial invoice

8、Documents that can prove that the goods have been declared

9、IOU (if required)

10、 For the application for import T/T financing that involves special supervision areas, Bonded supervision places and offshore resales, relevant documents shall be submitted in accordance with the relevant provisions of the SAFE

Avalization (Under the Import Trade)

1)、Product Introduction

Under the D / A, our bank shall guarantee payment of a bill of exchange drawn on an importer according to the instructions of the overseas remitting bank or the importer (hereinafter referred to as "the applicant for avalization"). If the applicant for avalization fails to pay on due, our bank will be liable for the payment.

2)、Conditions

Overseas remitting bank shall designate our bank as the collecting bank, with such statement as "Presenting / Collecting Bank is only allowed to release the documents against drawee's acceptance together with collecting bank's undertaking to effect payment on maturity (Avalization) by authenticated swift " on the collection document. The word “Avalization” is a must.

3)、Targeted Clients

（Ⅰ）Importers that adopt Documents against payment (D/A)

（Ⅱ）Exporters that need financing

（Ⅲ）Clients that have got credit line from our bank

4)、Financing Period

Our bank usually shoulders the responsibility of collecting and avalization for no longer than a year.

5)、Documents Required

Applicant for import collection and avalization shall submit the following documents to our bank:

（Ⅰ）General agreement on import collecting and avalization

（Ⅱ）Application for import collecting and avalization

（Ⅲ）Trust receipt

6)、Warm Tips

Import collecting and avalization service does not apply to re-exportation.

L/C Confirmation (Under the Export Trade)

1)、Product Introduction

L/C confirmation refers to that our bank opened an irrevocable documentary credit with a payment guarantee. Our bank, entrusted by the issuing bank or the beneficiary, adds payment guarantee to the L/C opened by the issuing bank. As long as the beneficiary (client) submit the clean documents in accordance with the L/C regulations, our bank will be liable for non-recourse payment.

2)、Types

Open confirmation and silent confirmation

Open confirmation is that the case wherever the L/C issuing bank requests to further confirmation to the advising & confirming bank on the L/C.

Silent confirmation is that the case wherever confirmation is applied for by the beneficiary.

3)、Product Functions and Advantages

1、L/C Confirmation will facilitate exporters stop the risks from the issuing bank.

2、L/C Confirmation will facilitate exporters stop the risks from the issue bank, the country risk of issue bank and also the exchange management risks.

3、Double guarantee. The payment is guaranteed.

4、Payment assortment guarantee. The exporter will gain the non-recourse payments or payments guarantees.

5、If the beneficiary is a large multinational company that meets the requirements of our bank, our bank can provide silent confirmation service it even if it has not established credit relations with our bank.

4)、Targeted Clients

Exporters that are not so clear about the credit condition of the issuing bank or want to get the final payment as soon as possible.

5)、Access Conditions

Our bank provides L/C confirmation service on the following conditions:

1、The L/C shall be valid.

2、Our bank is the advising bank of the L/C.

3、In the case of silent confirmation, there shall be no articles attached by other banks in the L/C.

4、The L/C shall be an irrevocable non-transferable one.

5、The L / C must apply to the Uniform Customs and Practice for Documentary Credits or be opened through SWIFT (MT700/MT710).

6、The L/C Shall not contain any articles that may violate the interests of our bank.

7、The reimbursement procedure is precise and clear.

6)、Warm Tips

1、The issuing bank shall establish a formal relationship with our bank and has sufficient credit lines;

2、The documents shall be reviewed in accordance with international conventions and L/C regulations to ensure that the documents are clean.

Packing Loan (Under Export Trade)

1)、Product Introduction

The packing loan refers to the short-term loan issued by our bank at the request of the exporter to finance goods’ procurement, production, and transportation prior to the shipment. The expected payment of goods under the L/C received by the exporter is the source of repayment.

2)、 Targeted Clients

1、Companies with import/export license;

2、Companies that have agreed with their customers to use L/C for fund settlement. Companies that lack funds for production and transportation of goods;

3、Companies that have sufficient credit lines in our bank and can provide guarantees (if necessary);

4、Customers who have or over A-Level credit rating in our bank (those eligible for a lower standard excluded).

3)、 Product Functions and Advantages

1. To seize trade opportunities. It can help exporters to run business smoothly and seize trade opportunities in the event of shortage of capital and failure to satisfy the requirements of advanced payment.

2. To reduce the financial pressure. It alleviates pressure of working capital as exporters’ own capital will not be occupied during lead time for production, purchase and so on, thereby providing financial support for pre-production and other expenditure.

3. To earmark the fund for its specified purpose only, that is, the fund is used for good’s procurement under L/C only.

4)、Financing Ratio and Period

1. Stipulations of financing ratio: for customers with or over AA-Level credit rating, the maximum amount of the principle and interest of financing is not higher than the amount of the issuance of L/C; for other customers, the maximum amount of financing is not higher than 80% of the amount of the issuance of L/C;

2、Financing period: the term of the packing loan stretches from the date of the loan to the month after the date of invalidation of the L/C. The term is less than one year (including extension).

5)、Document Required

1、Companies who are first-time appliers for packing loan should sign Export Packing Loan General Agreement with our bank;

2、Export Packing Loan Application;

3、Original irrevocable L/C and export sales contract. The borrower acting on behalf of the exporter should provide Export Agency Agreement.

4、For the export of restricted commodities, documents with official agreement to the export should be submitted.

Bill Purchased/ Discount under Export L/C (Under Export Trade)

1)、Product Introduction

Bill Purchased under export L/C is a facility granted by our bank to customers in which our bank purchases customers’ export documents/ bills with recourse after customers submit the full set of documents/ bills (including demand notes, and long-dated bills that have not been accepted) to our bank and provide guarantee measures approved by and in accordance with the requirements of our bank.

Discount under export L/C refers to a facility in which our bank make recourse financing on long-dated bills that have been issued/ accepted by the confirming bank/ guaranteed by payment guarantee under export L/C (excluding the standby L/C).

2)、Targeted Clients

1、Companies with import/export license;

2、Companies that have agreed with their customers to use L/C for fund settlement;

3、Companies that have sufficient credit lines in our bank and can provide guarantees (if necessary);

4、Companies with a credit rating of A- and above (those eligible for a lower standard excluded).

3)、Product Functions and Advantages

1、Alleviate financial pressure. Export bills of exchange or discounts enable exporters to get paid prior to the importer’s actual payment, so it can ease the financial pressure on exporters and help exporters expand the scale of their business.

2、Improve cash flow. Export bills of exchange or discounts can increase current cash flow, thereby improving financial condition.

3、Avoid currency exchange risks. Financing are provided mainly in the currency of the document which can be used in foreign exchange settlements and thus hedge against currency exchange risks.

4)、 Financing Ratio and Period

1. Stipulations of financing ratio: for export bills of exchange or discounts under export L/C, the maximum amount of financing is not higher than the amount of foreign exchange receipts of the document;

2. Financing period: the period of bills of exchange under sight L/C can’t exceed 2 months; the period of bills of exchange and discounts under usance L/C can’t exceed one year.

5)、Document Required

1、Export Bill Purchase/ Discount Agreement and Bill Purchase/ Discount under Export L/C Application;

2、Original L/C, original amendment (if any) and full set of documents under L/C as the pledge;

3、The L/C terms should be specific and reasonable, and the method of reimbursement concise and clear;

4、Negotiation/ acceptance is not restricted only to our bank by the L/C;

5、The issuing bank (the confirming bank) should have sufficient credit lines in the agency bank of our bank, or it should be a branch of our bank.

6、Documents under the credit should have no discrepancies (flaws); or the documents have been confirmed by the issuing bank (the confirming bank) with written consent despite the discrepancies (flaws) / adverse soft clauses / restrictions on negotiation or acceptance by other banks; or documents under usance L/C have been validly accepted or guaranteed by payment guarantee by the issuing bank (the confirming bank) / the accepting bank.

7、If the credit line of the agency bank is not sufficient or if there are discrepancies (flaws) in the documents, the credit line of the customer can be directly occupied for handling export bill purchase and discount business.

Bill Purchase/ Discount under Export Collection (Under Export Trade)

1)、Product Introduction

Bill purchase under export collection means that the exporter is required to submit the full set of export documents to our bank after the shipment under documentary collection, and our bank, after deducting the interest and related expenses, pay the exporter in advance with recourse, and then claim reimbursement for the recovery of financing funds.

Discounting under export collection means that our bank make discounted financing with recourse to the customer on the basis that the importer has accepted the usance draft after the exporter transported the goods under documentary collection.

2)、Targeted Clients

1、Companies with import/export license;

2、Companies that have agreed with their customers to use export documentary collection for settlement;

3、Companies that have sufficient credit lines in our bank and can provide guarantees (if necessary);

4、Companies with a credit rating of A- and above (those eligible for a lower standard excluded).

3)、Product Functions and Advantages

1、Alleviate financial pressure. Export bills of exchange or discounts enable exporters to get paid prior to the importer’s actual payment, thereby easing the financial pressure on exporters and help them expand the scale of their business.

2、Improve cash flow. Export bills of exchange or discounts can increase current cash flow, thereby improving financial condition.

3、Avoid currency exchange risks. Financing are provided mainly in the currency of the document which can be used in foreign exchange settlements and thus secure profit.

4)、Financing Ratio and Period

1、Stipulations of financing ratio: with regard to bill purchase or discount under export collection, for customers with or over AA-Level credit rating, the maximum amount of financing is not higher than the amount of foreign exchange receipts of the document; for customers whose credit rating below AA-Level, the maximum amount of financing is not higher than 80% of the amount of foreign exchange receipts of the document;

2、Financing period: not longer than 6 months.

Forfaiting (Under Export Trade)

1)、 Product Introduction

Forfaiting means that the forfaiter purchases the accepted outstanding accounts receivables without recourse, including:

1. Forfaiting under a usance L/C. The forfaiter purchases non-recourse outstanding accounts receivables accepted/undertaken by the issuing bank (the confirming bank) or the accepting bank.

2. Forfaiting under D/A. Under the D/A (documents against acceptance), exporters’ drafts are avalised by a collecting bank.

3. Forfaiting under O/A. Exporters’ drafts are avalised by the importer’s bank.

3There are five acceptable types of forfaiting by our bank. Our bank may purchase receivables, resell receivables to other banks, fund the deal in risk participation, or provide intermediary service only.

2)、Purpose

After the presentation under usance L/C and the receipt of a valid acceptance or documents against acceptance/ exporters’ draft under O/A payments which has been avalised by the bank / guaranteed by payment guarantee, customers will be provided with forfaiting business. Our bank can buy out undue receivables without recourse and convert customers’ forward accounts receivable into cash sales revenue.

3)、 Targeted Clients

Exporters who have received the letter of acceptance from the issuing bank (the confirming bank) or the accepting bank or the collecting bank or the importer’s bank. Forfating facility does not require exporters to be rated or given a credit line by our bank.

4)、Functions and Advantages

1. Optimize the financial statements. Customers can reduce accounts receivable in their balance sheets, so that the financial statements can be optimized.

2. Secure profits. At the backdrop of RMB appreciation expectation, it can help enterprises to secure the profits of foreign exchange settlement in advance and avoid losses caused by exchange rate fluctuations.

3. Simplify financing procedures. Forfaiting doesn’t occupy the customer’s credit line, and in principle it is not subject to the credit line of the customer.

5)、Financing Ratio and Period of Forfaiting (Self-purchasing Type)

1. Due date for payment: The time limit for L/C payment shall not exceed one year, under D/A or O/A no more than one year.

2.Stipulations of financing ratio: the sum total of the principal plus interest should be no more than 100% of accounts receivable.

3. Financing period: no more than one year.

Export Purchase Order Financing (Under Export Trade)

1)、 Product Introduction

Export purchase order financing means that in the international trade using non-credit settlement, our bank provide exporters with short-term financing on the premise that exporters provide valid trade orders under which expected accounts receivable are used as the first source of repayment. Exporters can apply to our bank for financing by unilaterally providing the orders of foreign purchasers, so that they can obtain the funds for financing prior to the delivery. Export purchase order financing enables customers to deliver goods and receive the payment specified in the trade order without delay, thereby relieving their financial pressure.

2)、 Targeted Clients

1、Companies with import/export license;

2、Companies that have signed valid trade orders with importers, using non-L/C settlement and having financing needs during the production phase and the lead time before shipment;

3、Companies that have sufficient credit lines in our bank and can provide guarantees (if necessary);

4、Companies with a credit rating of A and above (those eligible for a lower standard excluded).

3)、 Product Functions and Advantages

1. To seize trade opportunities. It can help exporters to run business smoothly and seize trade opportunities in the event of shortage of capital and failure to satisfy the requirements of advanced payment.

2. To reduce the financial pressure. It alleviates pressure of working capital as exporters’ own capital will not be occupied during lead time for production, purchase and so on, thereby providing financial support for pre-production and other expenditure.

4)、 Financing Ratio and Period

1. Stipulations of financing ratio: the amount of the principal and interest of the financing should not exceed 70% of the actual amount of the order; for exporters who meets the terms of unsecured loans of our bank, or purchasers who are among latest Fortune 500 or purchasers whose Moody’s long-term debt ratings and S&P’s long-term credit ratings are over A (including Moody’s A1, A2, A3 and S&P’s A+, A, A-), the maximum amount of the principle and interest of the financing can be loosened to 90% of the actual amount of the order; for exporters who can provide a full guarantee with zero risk factors, the maximum amount of the principal and interest of the financing can be loosened to 100% of the actual amount of the order.

2. Financing period: it should be reasonably formulated in accordance with the delivery term stipulated in the order. The maturity date of the financing shall be no later than 30 days after the delivery date as stipulated by the seller and the purchaser. The period of the financing shall not exceed 6 months, and extension or refinancing after the maturity date is not allowed.

Export Invoice Finance (Under Export Trade)

1)、Product Introduction

Export Invoice Finance offers trade financing to exporters receiving payment by remittance in foreign trade, based on the commercial invoices they provide with the accounts receivable as the first source of repayment. For exporters selling on credit terms, we will provide short-term financing to them after shipment, based on the commercial invoices they provide with the accounts receivable as the first repayment source.

2)、Targeted Clients

1、Companies with import/export license;

2、Companies that have agreed with their customers on O/A payments;

3、Companies that have sufficient credit lines in our bank and can provide guarantees (if necessary);

4、Companies with a credit rating of A- and above (those eligible for a lower standard excluded).

3)、Product Functions and Advantages

1. Ease financial pressure. Export Invoice Finance enables exporters to get paid prior to the importer’s actual payment, so it can ease the financial pressure on exporters and help exporters expand the scale of their business.

2.Improve cash flow. Export Invoice Finance can increase current cash inflow, leading to financial improvement.

3. Avoid currency exchange risks. Financing are provided mainly in foreign currencies which can be used in foreign exchange settlements and thus secure profit.

4)、Financing Ratio & Maturity

1. Rules on financing ratio: Finance for clients with a credit rating of AA- and above will not be more than the face value of the invoice; finance for clients with a credit rating under AA- will not be more than 80% of the face value of the invoice.。

2. Maturity: not longer than 6 months (even when extended)

5)、Documents Required

1. Export Invoice Finance General Agreement (submitted by first-time appliers);

2. Export Invoice Finance Application;

3. Original export contract;

4. Commercial invoice;

5. Relevant documents proving that the goods have been sent for export declaration;

6. Certificate of indebtedness (if necessary);

7. Foreign exchange business registration form for trade in goods issued by State Administration of Foreign Exchange (if necessary);

8. Applicants for Export Invoice Finance in areas under special customs supervision such as the bonded areas should submit relevant documents in accordance with the provisions of the State Administration of Foreign Exchange.

Export Insurance and Settlement (Under Export Trade)

1)、 Product Introduction

Under the trade settlement of credit and acceptance documents, export insurance and settlement is an integrated financial service provided for the exporter, including export trade financing, importer credit information investigation and assessment, sales accounting treatment, accounts receivable management and debt collections.

2)、 Purpose

For customers who make trade payment with credit or documents against acceptance with the importer, our bank can provide two factors or single factor according to the actual situation.

3)、Business Types

1、Export Two Factors: As an export factoring agent, we cooperate with import factoring agents to provide customers with comprehensive financial services including credit investigation of importers, guarantee of bad debts, collection of payment, sales ledger management and trade financing. It includes buy-out export two factors and non-buy-out export two factors. It can be divided into financing export two factors and non-financing export two factors according to whether our bank provides financing. It can be also divided into public export two factors and undisclosed export two factors according to whether the importer will be informed of the assignment of proceeds or not.

2、Export Single Factor: As both export and import factoring agent, we can provide the comprehensive financial services including export trade financing, sales accounting treatment, accounts receivable management and collection for customers.

4)、Targeted Clients

Customers who make trade payment with credit or documents against acceptance with the importer and have A-Level (or above) credit rating in our bank.

5)、Product Functions and Advantages

1. Comprehensive financial services. As an export factoring agent, we provide customers (the exporter) with comprehensive financial services including credit investigation of importers, guarantee of bad debts, collection of payment, sales ledger management, trade financing, accounts receivable management and collection.

2. Speeding up capital turnover and avoiding foreign exchange risk. Export factoring can help customers get paid before the importer pay the price of goods which speeds up the capital turnover. At the same time, the buyer’s credit guarantee provided by the factoring agency can help customers avoid any foreign exchange risks even if it is exported to high-risk areas.

3. Optimizing the financial statements. It transforms undue receivables into cash income and reduces customers’ asset-liability ratio. With the buy-out export two factors, customers can cancel the tax rebate in advance which can optimize the financial statements.

6)、Financing Ratio and Period

1. Stipulations of financing ratio: for customers with or over AA-Level credit rating, the maximum amount of financing is not higher than the amount of foreign exchange receipts of the document; for customers whose credit rating below AA-Level, the maximum amount of financing is not higher than 80% of the amount of foreign exchange receipts of the document;

2. Financing period: less than 6 months (including extension).

Trading Finance of Export Credit Insurance (Under Export Trade)

1)、 Product Introduction

The trading finance affiliated to short-term export credit insurance refers to a trade financing service for exporters which have insured short-term export credit (insurer must sign cooperative agreement with Head Office). The service is performed on the condition that our bank is entitled to claims and rights via accounts receivable transferred from or mortgaged by exporters and correspondent letters of export credit. Depending on whether to have right of recourse, trade financing service of short-term export credit insurance consists of two basic types: buyout type and non-buyout type.

2)、Targeted Clients:

1、Companies entitled to I/E operation right,

2、Companies agreeing with importers to settle accounts by means of O/A, D/P, D/A or L/C

3、Companies with sufficient credit line and capable of providing guaranty (if required);

4、Companies with A-class credit rating or above can register non-buyout type; with A+ class or above, buyout type is available.

5、Companies with short-term export credit insurance covered, valid short-term export credit insurance policy and buyer's credit line approved by CITIC.

3)、Scope of Applicability

1、Payment methods include L/C or D/P, D/A and O/A.

2、In principle, Payment period is no more than half a year. In case of written consent of insurance company, it can be extended to 3 years.

4)、Product Functions and Advantages

1. Avoid risks of foreign exchange. It can refrain from risks from importers' credit and financial conditions and strengthen the guarantee of export revenues;

2. Control the exchange rate risk. It can have early access to financing and control exchange rate risk;

3. Expand business cooperation. It can provide new financing guarantees for customers and expand the business cooperation between bank and exporting clients.

5)、Financing Ratio and Maturity

1. Rules on financing ratio: The amount of financing shall not exceed the lesser of the two: the amount declared by the enterprise to the insurance company multiplied by the proportion of the corresponding compensation and the buyer's effective credit limit approved by the insurance company multiplied by the corresponding proportion of the compensation.

2、Requirements of financing maturity: In principle, no more than 6 months. With written consent of insurance company, financing maturity of export credit insurance can be extended to no more than 3 years for complete sets of large equipment and materials, exporting goods and engineering exporting. For general merchandise, the maturity is no more than 1 year.

1)、 Product Introduction

Cross-border guarantee business is a service that at the client’s request, the bank (guarantor) make commitments to the guaranteed that bank is responsible for debt in case that insurer fails to fulfill debt payments clarified in the contract or fails to perform other obligations in the contract.

2)、 Business Types

Presently, our bank is able to, if applied, underwrite cross border businesses, inform the customer when receiving overseas guarantees and transfer from the overseas guaranteed businesses.

Our bank can conduct financing guarantee business and non-financing guarantee business. Financing guarantee business mainly includes loan guarantee and financing guarantee; non financing guarantee business mainly includes operation and lease guarantee, payment guarantee, bid guarantee, performance guarantee and advance payment refund guarantee, quality maintenance guarantee, retention payment guarantee and tariff guarantee.

3)、Targeted Clients

1、mport and export trading clients

According to the basic trading contract and agreement, our bank can provide services including, but not limited to, performance guarantee, advanced payment refund guarantee, quality maintenance guarantee, and retention payment guarantee; services for importing clients include but are not limited to payment guarantee.

2、Overseas Engineering Contracting Clients

According to the tender documents and basic transaction agreement, our bank can provide services including but not limited to bid guarantee, performance guarantee, progress payment refund guarantee, quality maintenance guarantee and retention payment guarantee.

3、Financing Clients at Home and Abroad

Based on supporting business expansions of subsidiaries of domestic enterprises, our bank can conduct insurance and loan services through business connectivity with domestic or overseas institutions within group or conduct direct lending business (Domestic borrowers need to have sufficient cross-border financing risk weighted balances) through business connectivity with overseas institutions or agents to meet financing needs of borrowers.

4)、Guaranteed Amount and Period

The amount of guarantee is based on basic transaction agreements. The amount of non financing guarantee is no more than RMB1 billion; the amount of financing guarantee contract guarantee no more than USD 70 million. The longest period is no more than 5 years (excluding services assuring full guarantee fund in pledge).

5)、Documents Required

1、Original business license, documents of the legal representative , articles of association, resolution of the board of directors, authorization documents (submitted for the first business processing);

2、Application of guaranty which is filled in correctly and sealed and signed by the legal representative or his authorized representative";

3、Financial statements for the latest three accounting years and financial statements of guaranteed periods (if required);

4、Basic transaction background information including the project contract, import and export trading contract, bid documents and loan agreements;

5、Financing or non-financing letter of indemnity and standby L/C opened by our bank;

6、Warranty documents authorized by our bank

7、Domestic enterprises conducting foreign investment businesses should provide documents approved or filed by NDRC, SASAC, MOC and business vouchers of ODI registration

8、Other documents required by our bank.